Australia 10-Year Yield Climbs to 2-Week High

Australia’s 10-year government bond yield rose to around 4.28%, hitting a two-week high as investors assessed the Reserve Bank’s interest rate outlook. Last week, the central bank cut the cash rate by 25 basis points to 3.60% as expected but struck a cautious tone, leading markets to anticipate a three-month pause before further easing. This view was broadly in line with stronger July jobs data, which eased pressure on the RBA to cut rates again next month, with employment rising and unemployment edging lower, signaling resilience in the labor market. Investors now expect the central bank to resume easing with another 50bps cut from its 3.60% cash rate, likely in November. Meanwhile, traders also looked ahead to Federal Reserve Chair Jerome Powell’s speech at Jackson Hole for US policy clues that could influence global yields, and to a high-level US-Russia meeting that could sway risk sentiment.